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What are Fixed Expenses?

12. What are Fixed Expenses?

  1. That does not fluctuate with changes in production level.
  2. Costs that change over time.
  3. Expense contains both a fixed-cost component and a variable cost component.
  4. Expenses that occur at various times throughout the year.

Answer: A) That does not fluctuate with changes in production level

Explanation:

The term fixed cost alludes to an expense that doesn't change with an expansion or abatement in the quantity of labour and products delivered or sold. Fixed expenses will be costs that must be paid by an organization, free of particular business exercises.

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